Drypers Corporation

1. Problem definition
What are the questions to be decided?Drypers Corporation’s senior executives were discussing about spending 10 million dollars which will increase 33% in the company’s combined advertising and promotion budget on national television advertising in 1998.

What are the objectives/goals?
1) Increase penetration of grocery outlets2) Increase grocery penetration will help increase mass merchants see us in a new light and help us break into this all-important retail channel. 3) Move from promotion-driven sales to brand-driven sales.

Is there any secondary concerns?
10 million dollars is huge amount expenditure, so short- and long- term sales and brand-building effect and profit impact are parts of the plan for 1998.

2. Situation analysis
Company backgroundDrypers Corporation is a producer and marketer of premium- quality, valued- priced disposable baby diapers and training pants sold under the Drypers brand name in the United States and under the Drypers name and other brand names internationally. The company also manufactures and sells lower-priced disposable diapers under other brand names (Comfees) in the United States and internationally, in addition to private- label diapers, training pants, and premoistened baby wipes. In 1997, branded products represent 88.9% of company net sales in the United States; sales of private- label and other products account for remaining sales. The company’s Drypers premium- brand diapers and training pants account for 52.3% of total company and domestic net sales in 1997, down from 62.3% in 1996 and 61.3% in 1995. The company leases manufacturing, distribution, and administrative space in nine locations in the US, Brazil, Puerto Rico, Argentina, and Mexico. Corporate headquarters are in the Houston, Texas. The company is the world’s sixth largest producer of disposable baby diapers and the third largest marketer of brand- name...

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The Corporation
Date:
Introduction
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“The Corporation” Commentary
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